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Infrastructure And Related Services. Participation

Original Language Title: Infraestructuras Y Servicios Relacionados. Participaci

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Legislative Power/ Eastern Republic of Uruguay
Published D.O. 19 ago/011-NAº 28290

Act NAº 18.786




The Senate and the CA of Representatives of the Eastern Republic of Uruguay, meeting in General Assembly,




ArtAculoA 1Aº.A (Object).-This law establishes the regulatory framework applicable to the Contract of Private-Private Participation Contracts.

ArtAculoA 2Aº.A (Contracts of Participation PAºblico-Private).-They are Contracts of Participation PAºblico-Private those in which a Public Administration instructs a person of private law, for a period determined, the design, the construction and the operation of the infrastructure or any of these benefits, in addition to the financing.

It will only be possible to hold contracts of participation in the private-private sector when previously resolved, in the form provided in this law, that other alternative modalities of contracts do not allow for the best form of satisfaction of the Public purposes.

ArtAculoA 3Aº.A (Application Scope).-The present normative framework will be of mandatory application for all the Public-Private Participation Contracts defined in this law.

Under the constitutionally established limits, such contracts may be concluded for the development of infrastructure works in the following sectors of activity:

A) Road, rail, port, and airport works. They will be considered as part of the road roadworks in rural areas.

B) Energy infrastructure works, without prejudice to what is set in the Decree-Law 14,694, 1Aº of September 1977 (National Electricity Law) and Law No. 8,764, dated October 15, 1931 (ANCAP Creation).

C) Waste disposal and treatment works.

D) Social infrastructure works, including brushes, health centers, education centers, social housing units, sports complexes and works of improvement, equipment and urban development.

This type of land colonization contracts may also be held, which by its location, surface and agricultural characteristics are economically appropriate for the formation of colonies, according to the established by the Law No. 11,029, of 12 January 1948, (creation of the National Institute of Colonization), in the wording given by the article 15 of the Ley NAºA 18,187, dated 2 November 2007. In particular, the contracts may include the services of collective interest mentioned in Article 48 asA as the facilities referred to in Article 52 of the Law No 11,029, of 12 January 1948.

In no case, the Public-Private Participation Contracts may include:

I) Educational services when it comes to educational centers.

II) Healthcare services when it comes to health centers.

III) Security, healthcare, and reeducation services for inmates when dealing with brushes.

The operation of the tasks whose loan corresponds to the State exclusively, as well as the exploitation of the monopolies established by law in favor of the State, are excepted from this contract.

For the purposes of this law, they are considered to be included in the term "Administrative Public", the State Powers, the Court of Auditors, the Electoral Court, the Administrative Court of Auditors, the Autónomos Autónomos, the Services Decentralised and departmental governments, without prejudice to the privileges, powers, rights and obligations assigned to them by the and applicable legal norms.

All those contracts of contracts provided for in letters orgA ¡ nics, laws or special procedures of contracts dictated to the date of the promulgation of this law shall remain in force.

ArtAculoA 4Aº.A (General principles and guidelines).-All acts and contracts concluded under this law should observe the following general principles and guidelines:

A) Transparency and advertising: All the actions developed in the framework of projects of the Public-Private Participation, with the limitations that in each case will set the current regulations, will be public and will be subject to control mechanisms.

B) Protection of the public interest: Any project of a Public-Private Participation, should seek the public benefit, respecting the general interest, and adopt the mechanisms of participation and control that will be applied throughout the duration of the contract.

C) Economic Efficiency: The celebration of contracts by the Public Administration, in the framework of projects Private-Private participation, should be based on the consequence of the highest Value for Money, including both the reduction of costs and the risk levels as well as deadlines for availability.

D) Appropriate risk distribution: Contracts entered into the framework of the Public-Private Participation projects should be consider an appropriate risk distribution between the parties, in order to minimize the cost associated with them.

E) Transfer: Contracts should set the modalities in which the works and the goods and facilities required for their The exploitation can be reversed or transferred to the Administration, as applicable.

F) Equanimity: The selection of the contracting subjects should be carried out by observing criteria of transparency, equanimity and non-discrimination, promoting competition among the bidders and seeking to achieve an adequate balance between the necessary speed, cost reduction of the procedures and the selection of the best proposal to the public interests.

G) Temporality: All contracts to be concluded should set a maximum duration of duration. The maximum period of duration of the contract and its terms may not exceed thirty-five years.

H) Fiscal Responsibility: Financial Expenditures and Commitments to Be Assumed Within The Participation Projects Framework Private-Private should be consistent with the financial programming of the State, in a framework of fiscal responsibility and due accountability.

I) Control: The Contracting Public Administration should establish appropriate control mechanisms in the respective contracts for effective protection of user rights and continuity and efficiency in the provision of services.

J) Protection of Sustainable Development: Projects implemented through the mechanisms of the Public-Private Participation should promote the sustainable development of society and the economy by adopting measures to protect the environment for the benefit of current and future generations.

K) Respect for labor rights and the legal norms that regulate it in particular as regards recognition and respect for "collective bargaining".

ArtAculoA 5Aº.A (Contrabenefits for project development).-In consideration for the activities assumed, depending on the type and characteristics of each project, the contractor may perceive different Revenue arrangements, in an exclusive or combined form, paid by the users or the Contracting Public Administration, among others.

Depending on the characteristics and structure of each project, it may be determined for the benefit of the Public Administration, the perception of income by this consistent in payments from the contractor, users, or others that If applicable, they are provided.

ArtAculoA 6Aº.A (Public contributions for the development of projects for the participation of private-private participation projects).-According to the specific characteristics of each project and for the purpose of making it viable, the contract It will be possible to provide for contributions by the Public Administration, such as financial contributions, grants, loans, guarantees for project financing, guarantee of income and tax exonerations, among others. From these contributions, the ones that require it, should have the decree of the corresponding Executive Branch.

In no case will you be able to contractually secure mAnimos levels of project profitability.

The contract should determine the conditions to which compliance will be subject to the public contributions, their modification or termination.

The economic contributions by the Public Administration may be realized when these constitute a stimulus to the efficient economic management, and this is in its benefit and in that of the users of the service, according to the the result of the previous studies provided for in Article 16 of this Law.



ArtAculoA 7Aº.A (Competition contribution).-The Contracting Public Administration, within the A-sphere of its competence, will be responsible for the design, structure and celebration of Participation Contracts Private-Private, as well as the control of its correct execution and the fulfillment of the obligations assumed by the contractors. This shall, without prejudice to the powers and powers of regulation and control which correspond to other State bodies in accordance with their original powers and to those conferred by this law.

ArtAculoA 8Aº.A (Technical Commission).-For each project the Contracting Public Administration will designate a Technical Commission to advise on all stages of the contract procedure. The Technical Commission will be composed of a minimum of three and a maximum of five members, two of them, at least, officials of the Contracting Public Administration. Its members shall have suitability in the different aspects that make up the contract matter and at least one, which may or may not belong to it, should have a recognized technical suitability in the subject matter of the contract.

The members of the technical commissions will be required to file affidavit according to the Law No 17,060of 23 December 1998.

ArtAculoA 9Aº.A (Competences of the National Corporation for Development in respect of projects of Participation in Public-Private Participation).-Without prejudice to the tasks attributed by the Law No 15,785of 4 December 1985 and other concordant and amending rules, the National Development Corporation shall have the following tasks:

A) Develop and encourage the execution of projects of the Public-Private Participation through the application of the best technical criteria and adherence to the principles and orientations contained in this law.

B) Develop the technical guidelines applicable to projects of the Public-Private Participation through the development of the guAas The best practice is to provide the best practices, models and instruments that contribute to the design and implementation of the projects in a more efficient and efficient way. The dissemination of these will require the approval of the Ministry of Economic and Finance, prior to the Planning and Budget Office report.

C) Advising on identification, conception, design, study, structure, promotion, selection, and contract Public-private participation projects in the terms and conditions to be agreed upon by agreement with the Contracting Parties.

D) Contribute to the strengthening of capabilities of the Contracting Parties in the design and implementation of Public-private participation projects.

E) Advising the Executive Branch to identify and prioritize projects that are likely to be executed through the Private-private participation.

F) Facilitating to the Contracting Parties the interagency coordination of their activities related to Public-private participation projects.

G) Creating or acquiring commercial partnerships of any nature as financial instruments, when this is understood necessary for the best development of projects of Public-Private Participation.

ArtAculoA 10.A (Project structure).-For the structure of projects of Public-Private Participation, the Contracting Public Administration may contract directly to the National Corporation for Development.

You can also hire companies that are highly qualified in this field. The selection and hiring of such companies should be carried out through the general administrative contract, not being applicable to the contracting mechanisms established in this law.

ArtAculoA 11.A (Implementation of Projects by the National Development Corporation).-Prior authorization duly founded from the Executive Branch, the Administrative Public Administration may agree directly with the National Corporation for Development (CND) that is assuming the implementation of a project of the participation of the PAºblico-Private Participation in integral form, in order to make it viable and to transfer the same to the private sector through the contract procedures foreseen in the the present law.

This mode of implementation can be applied only in those projects that do not exceed the amount of investment estimated to be established by the regulation. Likewise, the regulation will set the maximum deadline within which the CND should transfer the project to the private sector.

For these purposes, the CND may execute the project directly or indirectly, through the conclusion of contracts or commercial agreements of any kind, in accordance with the provisions of Article 3 of this Law.

ArtAculoA 12.A (Contracts for Participation in Institutional Private-Private-Institutional).-In the framework of the tasks set out in the article 11 of the Law No 15,785of 4 December 1985 in the wording given by ArcuculoA 34 of the Ley NAºA 18.602, of 21 September 2009, the Contracting Administration may directly conclude contracts of participation in private-private participation with the National Development Corporation (CND) according to the procedures defined in Articles 15, 16, 17 and 18 of this Law. In case the CND gives in full or in part the contract referred to above, it must do so in any of the procedures defined in Articles 19 and 20 of this Law.

ArtAculoA 13.A (Private-Private Participation Projects Unit).-Crate the Project Unit of Private-Private Participation Projects that will depend on the Ministry of Economic and Finance, and (a) as committed in respect of projects under this law, the following:

A) Track the financial-financial aspects.

B) Verify compliance with budgetary aspects.

C) Evaluate the associated risks.

D) Perform the tests and records that are committed to the Ministry of Economic and Finance in this law.

The regulation will establish its form of integration and its specific tasks.

ArtAculoA 14.A (Project Registry).-The Registry of Projects of Private-Private Participation whose organization is committed to the Ministry of Economic and Finance, which will include the contracts signed for The development of projects for the participation of private and private participation and its modifications; the calls to interested parties for the award of projects of participation in the private-private sector; the private initiatives presented for the development of projects of Private-private participation, respecting the rights of confidentiality that correspond to the holder of the initiative; and the audit reports of projects of participation in the private-private sector. The regulation will establish the content and formalities under which the constitution and administration of the registry will correspond, as well as the updating of the information contained therein, among other aspects.



ArtAculoA 15.A (Process Start).-The process of signing a contract for the development of a Public-Private Participation project can be initiated by public initiative, or, originating in a private initiative submitted by a proposer, in which case the mechanism provided for in Chapter VII of this Law shall be followed.

In both cases, such acts shall be filed for the purposes of their registration with the Project Registry referred to in Article 14 of this Law.

ArtAculoA 16.A (Previous evaluation).-With no cter prior to the start of the contract procedure, the Contracting Public Administration should have an evaluation document in place manifest the feasibility and convenience of the project in question.

Depending on the characteristics of each project, the prior evaluation may be separated into pre-feasibility studies, feasibility studies and impact studies.

The evaluation document should include, among other aspects, a comparative analysis with alternative forms of contract that justify in terms of technical, legal, economic and financial terms, the adoption of this hiring. In particular, it should be shown that the proposed contract model is the one that allows the State to obtain the largest "Value for Money".

The regulation will establish the scope, form and content of such prior assessment, including, among others, the technical, commercial, financial, legal, environmental, and economic and social impact areas.

ArtAculoA 17.A (Contract Content).-The Private-Private Participation Contracts should necessarily include, and without prejudice to, the necessary stipulations or that the parties agree, the following Aspects:

A) Identifying the main capabilities that constitute your object.

B) Risk-sharing conditions between the contractor and the contractor, breaking down and specifying the imputation of the risks derived from the variance of the costs of the benefits and the imputation of the risks of availability or demand of such benefits, among others.

C) Performance targets assigned to the contractor, particularly as regards the quality of services, works, and supplies and the conditions under which they should be placed at the disposal of the Contracting Public Administration.

d) Remuneration of the contractor, which should break down the bases and criteria for the cost of the investment, operation and financing and, where appropriate, the revenue that the contractor may obtain from the exploitation of the works or equipment.

E) Causes and procedures to determine the variations in remuneration throughout the contract execution period and criteria applicable to the maintenance of the balance of the economic-financial equation of the contract if it corresponds.

F) Payment transactions and, in particular, conditions in which the amount of payments on each maturity or in a given period to satisfy by the contractor and the amounts that the contractor must pay to the contractor as a result of penalties or penalties, may be the subject of compensation.

G) System of control by the Contracting Public Administration applicable to the execution of the contract, especially for performance objectives, as well as the conditions under which any transfers or sub-contracts are authorised. The costs of running this system should be foreseen within the overall project cost structure.

H) Applicable penalties in case of breach of contract obligations.

I) Conditions in which the modification of certain aspects of the contract or its resolution may proceed, in accordance with the established in this law.

J) The target of the works and equipment that is the object of the contract to the completion of the contract.

K) GarantAs that the contractor should have to affect to meet their obligations.

L) Mechanisms applicable to the settlement of the contract itself, including provisions on the compensation to which you may give place the same.

M) Reference to general conditions and, where appropriate, to special conditions that are relevant in nature of the main capabilities.

N) Other obligations of the contractor such as the presentation of their audited accounting statements within six months counted from the closing of each Fiscal Year.

ArtAculoA 18.A (Previous studies and contract bases).-Pre-evaluation studies and the basis of contracts referred to in the preceding articles shall be submitted to the Office of Planning and Budget and the Ministry of Economic and Finance for consideration and report, which will be processed according to the deadlines and conditions that the regulation establishes.

Both agencies, acting in a coordinated manner, will evaluate these studies and bases of contract, taking into consideration the social and economic impact of the project, the budgetary aspects, the economic and financial viability and the benefits of adopting this contract mode.

It will also be determined, in this instance, or, failing that, in defining the final conditions of the contract, the characteristics of the distribution of risks between the Contracting Administration and the contractor.

The autónomos and decentralized services, should make the presentation through the Ministry concerned.

In the case of the organisms included in the , prior to the realization of the public appeal to persons referred to in Article 19 of this Law, should send a copy of the corresponding contract bases to the Executive Branch, so that this report to the General Assembly.

Departmental governments that opt for the conclusion of the Public-Private Participation Contracts should comply with the procedure laid down in this law. Your corresponding presentation should be done through the Sectoral Start of Decentralization.

ArtAculoA 19.A (Call to interested parties).-Once obtained the report referred to in article 18 of this law, the Contracting Public Administration may make a public appeal, establishing the competitive procedure to use as the terms and conditions applicable to it, according to what is established by the regulation.

The Public Administration may use any competitive method, including bidding, auction, or any other than the general principles accepted in the current regulations.

ArtAculoA 20.A (Competitive logo procedure).-The Public Administration may apply a competitive logo procedure with that or those postulants that, having been presented to the public call, comply with the technical and economic solvency requirements set out therein.

In the course of this procedure, all aspects of the contract may be discussed, in order to contribute to the definition of the specifications.

During the procedure, equal treatment will be given to all participants and, in particular, they will not be provided with discriminatory information that may give advantages to certain participants with respect to the rest. The solutions proposed by a participant or other confidential data communicated to them without their prior consent shall not be disclosed to the participants.

The competitive logo procedure will continue until it is possible to determine, if necessary, the solutions that are appropriate to the object of the call.

After closing the competitive logo and notify all participants, the submission of tenders will be convened in accordance with the specification of the specifications.

In all cases where the procedure of the competitive logo is applied, it must be specified in advance, in the opportunity of the public appeal referred to in Article 19 of this Law, if the diA logo is concluded, only offers who or those who have participated in the logo will submit tenders, or if the submission of tenders will be open to any interested party. In the event that a single candidate has participated in the competitive dialogue procedure, the submission of tenders should be open to any interested party.

The Public Administration may set preferences or compensations for that or those applicants participating in the competitive logo, giving an account of the same in the public appeal referred to in Article 19 of the present law.

ArtAculo 21.A (Presentation of the offers).-The offers should include all the elements required and necessary for the project to be performed. The regulations shall establish the conditions for such presentation, the required documentation, the forms for opening the offers, the possibility of formulating clarifications, corrections or caveats and the minutes to be worked.

ArtAculoA 22.A (Review of the offers).-The criteria for evaluating the offers should be stipulated in the corresponding specifications, according to the conditions set by the regulation. The same may include various elements linked to the subject of the contract, such as the quality, the price, the usable formula to review the remuneration linked to the use of the work or the service, the period of execution or delivery of the loan, the cost of use, the financial conditions of the economic benefits, the satisfaction of social needs, the profitability, the value and technical suitability of the proposal, the technical solvency and economic of the proposer, the garantAas, the characteristics of the functional, as any other element relevant to the contract.

In no case may the offer that was founded be considered to be considered as more convenient than may be deemed to be unfulfilled as a result of the inclusion in the same of abnormal or disproportionate values.

ArtAculoA 23.A (Adjudication of offers).-The Technical Commission will classify the bids submitted in order to meet the different criteria.

Prior to the report of the Project Unit of the Public-Private Participation Project, the Contracting Public Administration, through its competent computer of expenditure, will have the provisional award by way of a founded resolution, which should be notify all bidders and set the final terms of the contract.

The process will continue with the intervention of the Court of Auditors, which will have thirty days for delivery, counted from the reception of the notification file. If this time limit is expired without the Court of Auditors being issued, it will be considered that there is a favourable pronouncement by the Court and that the process will continue in accordance with the following points.

The final award cannot be made before thirty days have elapsed since the notification of the provisional award.

Prior to final adjudication, the successful bidder should provide all documentation whose presentation would have been deferred for this stage, as well as constituting the contract compliance guarantee when applicable.

The final award shall be communicated to all bidders and to the Court of Auditors, as determined by the regulation and registration in the Register of Projects set out in Article 14 of this Law.

Where the final award of the contract to the offeror who has been awarded a provisional tenderer is not applicable, because he does not fulfil the necessary conditions for this, the Contracting Party may make a new Provisional award to the offeror or offerors following that, in the order in which their tenders are classified, provided that this is possible and that the new successful tenderer is in conformity. The new provisional award will require a report from the Private Public Participation Projects Unit.

In any case, the Contracting Public Administration may reject all offers without any liability, not recognizing payments or refunds for the expenses of the bidders.

.A (Formalization of the contract).-The contract must be formalized in writing, within a period of not less than ten days or more than thirty days, counted from the following day the final notification of the final award, provided that no action has been taken against that act.

If administrative appeals were brought against the final act of award, the contract should be formalised in writing within the period of thirty days from the date of the final act, or the lifting the suspensory effect of the appeal, where appropriate.

When for reasons attributable to the contractor the contract has not been formalized within the indicated period, the Administrative Public Administration may revoke the act of adjudication, as well as the seizure of the guarantee of maintenance of the offer which, if any, would have been constituted.



ArtAculoA 25.A (GarantAas).-The Contracting Public Administration shall require the bidders to constitute a guarantee for the maintenance of their bids until the provisional award of the contract and a garantAa of contract performance, in terms and conditions that provide for the regulation and the general and particular specifications.

ArtAculo 26.A (Offer Maintenance GarantA).-The offer maintenance guarantee will be retained until it comes to the constitution of the contract fulfillment guarantee or the entire the offers. Companies that unjustifiably withdraw their proposal before the award will lose the constituted guarantee, which will be in favor of the Contracting Public Administration.

The successful bidder may apply the amount of the offer maintenance guarantee to the contract compliance guarantee or proceed to a new constitution.

The provisional award of the contract may be left without effect if the successful tenderer does not comply with the constitution of the guarantee of performance of the contract, without prejudice to the loss of the guarantee of maintenance of the offer previously constituted in favor of the Contracting Public Administration.

ArtAculoA 27.A (Contract Compliance Extension).-In case they become effective on the guarantee penalty or indemnification payable to the successful bidder, the successful tenderer must either replenish or extend the guarantee. in the corresponding quantAas, within fifteen days from the execution, incurring otherwise in case of resolution.

When, as a result of a modification of the contract, you experience variance the price of the contract, you must readjust the guarantee, so that you keep the due proportion with the new modified price, within the period of fifteen days counted from the date on which the modification agreement is notified to the contractor.

ArtAculoA 28.A (Affection of the constituted garantAas).-The contract fulfillment guarantee will answer the following concepts:

A) Of the penalties imposed on the contractor.

B) Of the correct execution of the benefits provided in the contract, of the expenses incurred to the Public Administration for the delay of the contractor in the performance of his obligations, and of the damages caused to the contractor in connection with the execution of the contract or for its failure to comply.

C) Of the seizure that can be decreed in the case of the contract resolution, or according to what, in the Regulation or this law is set.

D) Of other non-compliances relating to conditions expressly stated in the regulation, the particular specification or the contract.

ArtAculoA 29.A (Preference in the execution of garantAas).-To make the guarantee effective, the Contracting Public Administration will have a preference over any other creditor, whatever the nature of the and the title of the one that derives its credit. When the guarantee is not enough to cover the responsibilities to which it is affected, the Contracting Public Administration will judicially proceed to the collection of the difference.

ArtAculoA 30.A (Devoluciation and cancellation of garantAas).-The guarantee will not be returned or cancelled until the expiration of the guarantee period has expired and the contract has been successfully completed in question, or until the resolution of the contractor is declared without fault of the contractor. In the case of partial reception only the contractor may request the return or cancellation of the proportional portion of the guarantee when the contract is expressly authorized in the contract. In cases of termination of contracts, the transfer or cancellation of the guarantee provided by the transferor shall not be made until it is formally constituted by the transferee.



ArtAculoA 31.A (Administrative resources).-Administrative acts dictated by the Contracting Public Administration in the contract procedure may be challenged by the (a) the provisions of this Law and other legal provisions governing the matter as soon as they are not contradicted by the provisions of this Law and the provisions laid down in this Law; established in this law.

These resources, except that which is interposed against the definitive award, shall not have a suspensory effect, except that the Administration, by reason of its founding, has the opposite.

The Public Administration may have the lifting of the suspensory effect on the act that resolves the final adjudication when, by reason of resolution, declare that such suspension affects the indefrotable needs of the service or cause serious harm.



ArtAculoA 32.A (Aptitude to contract).-It may only contract with the Public Administration, within the framework of this law, fully capable national or foreign national or foreign legal persons, who are not included in a prohibition to hire and to credit their economic, financial and technical or professional solvency in the terms and conditions required in each case.

ArtAculoA 33.A (Bans to contract with the Administration).-You will not be able to assume the condition of bidders or contractors, by sA or by person, who are included in any of the following situations:

A) Capacity or legitimisation, or be affected by prohibition, interdiction, disabling, or similar impediments of contractual, legal, judicial, arbitral or any other nature to be able to contract with the State in general, or with the Contracting Public Administration in particular.

B) Hayan acted as consultants hired by the Contracting Public Administration, in the implementation of the project in which they intend to participate as potential bidders, provided that such participation can be a privileged treatment with respect to the other potential bidders.

C) Be a public official dependent on the Contracting Public Administration or be a firm, company or entity with which the official esta© linked for reasons of direction, participation or dependency.

D) Contractor process on the contractor's limit, or the contest would have been qualified as guilty by court judgment.

E) It has been decreed in its respect within the preceding five calendar years, counted from the date of the last publication of the public appeal to interested persons referred to in article 19 of this law, the resolution for failure to comply with its part of a contract concluded with the State in general, or with the Administrative Public Administration in

F) Having been punished for the commission of serious violations in violation of labor or environmental standards, provided that such decisions are firm and have been applied within twenty-four months prior to the public appeal referred to in Article 19 of this Law.

The persons in the preceding cases may not act as members of a consortium or as a subcontractor of the consortium, either directly or through another controlled entity, which is linked to or is part of a consortium. economic set with it.

Also, the above prohibitions shall apply to those subjects or entities which, by reason of direction, participation or other circumstances, may be presumed to be a continuation or that they derive, by transformation, (c) the following or any other form, of those undertakings included in one or more of the causals previously stated.



ArtAculoA 34.A (Competence to process private initiatives).-Facultete a las Administraciones PAºblicas a instruct y substantiar initiatives privada para el desarrollo de proyectos de Participacióndo PAºblico-Privada within their respective fields of competence.

ArtAculoA 35.A (Tramitation of projects for private initiatives).-Private initiatives whose execution, in the judgment of the proposer, requires the implementation of a Contract of Public-Private Participation, They will be presented to the National Development Corporation, accompanied by the information regarding the project and its feasibility analyzed at the pre-feasibility level.

The information received will be evaluated and sent to the competent Public Administration, which will resolve the information about its acceptance, modification or rejection, without any responsibility.

ArtAculoA 36.A (Stages of the private initiative procedure).-Accepted the initial proposal, with or without modifications, the proposer should elaborate and present the feasibility study of the project according to the the scope established by article 16 of this law, within the time limit set by the regulation and in accordance with the requirements of the Public Administration.

Once the report referred to in Article 18 of this Law has been obtained, the Contracting Party shall be entitled to make a public appeal to the persons concerned referred to in Article 19 of this Law and shall continue with the selection and contract procedures established in this law.

ArtAculoA 37.A (Proposer's Rights).-The proponent of a private initiative will enjoy the following rights and preferences:

A) Obtain, once the final contract award has been made, the reimbursement of the accepted costs associated with the contract the feasibility study is carried out, in the event that the project is not successful. These costs will be borne by the successful tenderer, which should be reported in the respective public call.

B) Obtain an advantage of up to 10% (ten percent) in the value of your offering with respect to the best offer. In addition, the promoter of the initiative should not pay the corresponding documents or descriptive documents.

In case the promoter does not carry out the feasibility studies within the time limits established by the regulation, the Public Administration may do them in case or contract them according to the procedures of the The corresponding contract, losing that every right to receive consideration or benefit.

ArtAculoA 38.A (Private initiative confidentiality).-All information regarding the private initiative presented will be confidential. Adopted by the Administrative Public Administration the decision to make a public appeal for the award of the project, the initiative will be transferred in full right to the administration. If the call is not made, the promoter of the initiative shall keep all rights thereon for a period of two years.



ArtAculoA 39.A (Control competition).-The Contracting Public Administration will be competent to control the performance of the contract, and must inform the Participation Projects Unit Private-Private, with a biannual periodicity, the state of compliance. You should also inform such Unit of any substantial changes or non-compliance within the ten days of verified such alteration or non-compliance.

Without prejudice to the reports referred to in the preceding incident, the Public-Private Participation Project Unit may request the Contracting Administration, at any time and when it considers it appropriate, to information or documentation regarding the fulfillment of the contracts, as well as recommending the hiring of specific external auditorAas that contribute to ensure the correct follow-up of the contracts.

The regulation will establish the scope, form and content of the reports, which should include technical, commercial, environmental and economic-financial aspects, among others.

ArtAculo 40.A (Control areas).-The controls to be exercised by the Contracting Public Administration will cover the technical, operational, legal, economic, financial, accounting, and environmental aspects in accordance with the regulations and the corresponding contract.

ArtAculoA 41.A (Instruments for the exercise of control powers).-The Contracting Public Administration shall have wide control powers and may use different instruments for the exercise of functions such as information requirements, external audit, evaluation of performance, inspections and expertise. For these purposes, the contractor shall be obliged to provide, at the request of the Contracting State Administration, all information and documentation relating to the performance of the contract that it requires, without being able to oppose it. the business secret.



ArtAculoA 42.A (sanctioning system).-The contracts entered into for the development of projects of the Public-Private Participation should establish the applicable sanctions for the different cases of non-compliance or defective compliance with the intended purpose of the same, as the aggravating or mitigating factors in case of reciprocation. The penalties will be graduated in the form of gravity and the repetition of the defaults, and it is possible to reach the contract.

ArtAculoA 43.A (General sanctions application framework).-The determination of applicable sanctions will be subject to the principles of legality, due process, equality, proportionality, generality and adaptation to the end.

The application of such sanctions shall be without prejudice to the administrative, civil or criminal responsibilities that may be of the contractor to the Contracting Public Administration or to third parties, which have been injured as a result of non-compliance.

The sanctions provided by the Contracting Public Administration shall be effective immediately, without prejudice to the actions to which the contractor is entitled in the framework of the procedures for the settlement of disputes and remedies. provided for in the law, in the regulation or in the contract, as independently of the fulfillment of the administrative resolution that imputed to the contractor a certain obligation to give, to do or not to do according to the previewed rules.

ArtAculoA 44.A (Compensation for damages).-When the contract is resolved by default of the contractor, the contractor must indemnify the Contracting Public Administration for damages and damages. Compensation shall be effective, in the first term, on the guarantee that it has been constituted, without prejudice to the subsistence of the contractor's liability in respect of the amount exceeding that of the seized guarantee.

ArtAculoA 45.A (Precautionary measures).-Once the sanctioning procedure has been initiated, the Contracting Public Administration may request the competent Judge to impose precautionary measures necessary to to ensure the effectiveness of the sanctioning resolution, without requiring the provision of contrackets.

ArtAculoA 46.A (Right of Retention).-The Contracting Public Administration may withhold from the payments that under the contract it was required to make, the sums necessary to make the collection of the Financial penalties imposed.



ArtAculoA 47.A (Amendments to the contract by the Administration).-The Contract of the Public-Private Participation may recognize the power of the Contracting Administration to modify the contract, stipulating the concrete aspects of the contract that may be subject to such modification, the consideration that in its case correspond, as the maximum amount of the additional investment that the modifications may require and the time within which the power may be exercised.

Pactada that is the power referred to in the above incisoA, the Administrative Public Administration-after report of the Office of Planning and Budget, the Ministry of Economic Affairs and Finance and the intervention of the Court of Auditors-will be able to (a) to modify the characteristics or the cost of the works or services contracted, to improve or increase the levels of services or technical standards laid down in the specifications and in the contract; or other reasons for duly substantiated public interest, without affecting them substantial terms of the contract. The contractor shall be entitled to the economic compensation corresponding to the net additional costs incurred by such a concept.

In any case, the maximum amount of new investments or service expenditure, required by the modifications arranged in accordance with the above, will not exceed 20% (20%) of the budget of the work or expenditure in the operation agreed upon in the original contract.

ArtAculoA 48.A (Modifications provided for in the contract).-The Contract of Private-Private Participation may set conditions, which the parties may agree upon. It may also stipulate the aspects of the contract reached by it and provide for solutions among which it may choose to modify the contract, the maximum amount of the additional investment that the modifications may require and the deadline within of which the revisiting may be agreed.

In any case, the maximum amount of these new investments will not exceed 50% (fifty percent) of the budget of the work or the expenditure in operation under the original contract, and in the construction stage this percentage will not be rotten. exceed 30% (thirty percent).

artAculoA 49.A (renegotiation of contracts).-Without prejudice to the above article, and even in the absence of such a notice, either party may require the other to renegotiate the Private-Private Participation Contract when one of the following hypotheses occurs:

A) When the Contracting Public Administration modifies, for reasons of public interest, the costs and benefits expected when hiring, and all of the following requirements are met:

I) That the modification occurs after the contract is signed and not could be reasonably foreseen by the contractor at the time of their celebration.

II) That the modification significantly alters the equation financial-financial resulting from the contract at the time of its celebration.

III) That the modification is specifically relevant to the contract, and not produced by measures that seek a general-financial-financial effect.

B) When causes of force majeure not expected when the contract is concluded will directly determine the substantial breakdown of the contract economic-financial equation resulting from the contract at the time of its celebration.

C) When any of the assumptions provided for in the contract occur as a condition of your review pursuant to the article 48 of the This law, and the parties do not agree on the modifications to the contract.

If either party did not agree to the renegotiation, or the parties did not reach an agreement in the negotiations, any of them may have a jurisdiction to claim a compensation in accordance with Article 54 of this Law.

ArtAculoA 50.A (Cesiation and subcontracting).-The contractor may give full or partial consent to the Contract of Participation of Private-Private to a third party, with the prior authorization and express of the Administration Contracting authority, which must verify that the transferee has the necessary requirements and conditions. The cessation may proceed as long as the technical or personal qualities of the transferor have not been the determining reason for their award. In the case of the cessation, the transferee shall be subrogated to all rights and obligations corresponding to the transferor.

The contractor may subcontract to third parties the benefits placed in his or her capacity, unless the contract or the documents provide otherwise or that by its nature and conditions it shall be deducted that the contract or the contract is to be executed directly by the contractor. successful. The regulation shall lay down the requirements that must be met in formal, substantive and procedural matters.



ArtAculoA 51.A (Extincation of contracts).-Private-Private Participation Contracts will be extinguished by the following causes:

A) Compliance with the contract according to the terms of the contract and to the satisfaction of the Contracting Public Administration of the all of the prestr.

b) Time-to-date expiration for its validity or its own.

C) Unilateral and early termination of the contractor's default contract.

D) Rescue provided by the Contracting Public Administration, for reasons of public interest, in the terms provided for in the regulations and the respective contract.

E) Impossibility of compliance as a result of measures taken by the State.

F) Impossibility of contract compliance as a result of a bankruptcy process with respect to the contractor.

G) Aation of any causal that disables the contractor effective compliance with its prestation.

H) Impossibility of contractor compliance as a result of force majeure or fortuitous case. If the fortuitous event or event of force majeure affects only the fulfillment of some of the obligations of the contract, or of those linked to part of the committed investment, and to the extent that the obligations of the contract are The parties must agree, as defined in the terms of the competition, the adjustment of the legal, technical and economic provisions of the contract, in order to bring it into line with the obligations of the parties. subsents.

I) Mutual agreement between the Contracting Public Administration and the contractor.

J) In the other cases expressly provided for in the corresponding contract.

ArtAculoA 52.A (Intervencionated by the Contracting Public Administration).-If the unilateral and anticipated resolution of the Contract of Participation PAºblico-Private for non-compliance of the contractor is available, or if The abandonment of the project by the contractor will occur, the Contracting Public Administration may be able to take charge, for as long as it is necessary, of the construction or exploitation of the installation in order to assure the efficient loan, effective and uninterrupted service.

For such purposes, the Contracting Public Administration shall appoint a financial controller, which shall have the necessary powers to ensure the performance of the objects of the contract. The financial controller shall respond to civil, criminal and administrative action for the actions or omissions or omissions in which he or she incurs the exercise of the office.

The intervention cannot be extended for more than 24 months. In that period, the Administration must resolve the continuity or cessation of the activities which are the subject of the contract; and in the first case, the administration shall proceed to a new award under the terms of Article 19 et seq. of this Law, or by means of the public auction provided for in Article 58, or where appropriate, by undertaking such activities by their own means and by means of expropriations from the right, if appropriate.

ArtAculoA 53.A (Advance contract of contract).-For the purpose of giving the time horizon necessary for the realization of new investments and the adequate maintenance and in order to ensure the continuity of the Quality of the service, the contractor and the Contracting Public Administration may agree to the realization of a new public call within a period not greater than five years prior to the completion of the contract. The process must comply with the formal, substantive and procedural requirements contained in this law in the appropriate manner and in accordance with the provisions of the regulation.

If the contractor is not successful in the new call, the contract will be extinguished and will be compensated for the remaining time, in the terms determined by the regulation and the contract.

ArtAculoA 54.A (Dispute resolution).-For the settlement of conflicts arising in connection with the application, interpretation, execution, compliance and extincation of contracts concluded in the framework of the This law, the parties shall have recourse to arbitration.

The members shall be appointed to the agreement of the parties or, failing that, in accordance with the provisions of Article 480 of the General Code of the Process and shall fail in accordance with the law. The award of the arbitral tribunal shall be unappealable.



ArtAculoA 55.A (GarantAas for the benefit of creditors).-The contractor of a project of the Public-Private Participation may constitute, for the benefit of its creditors under the execution of that contract, garments on future fund flows to be generated in the project, as well as guarantAa trusts, and all other personal or real guarantees on their current or future assets and rights, all in accordance with the current legislation.

ArtAculoA 56.A (Prenda of the emerging rights of the Contract of Participation in Private-Private Participation).-The contractor of a project of the participation of the Public Private-Private will be able to conclude contracts of pledge on the rights of which is the holder of the Contract of Participation of Private-Private and on the goods incorporated in its execution, exclusively to guarantee the fulfilment of its obligations with the financiers of the work, of its operation or maintenance, as well as those resulting from a trust constituted by such effects.

The contract will be documented in public writing or in private document with notarized signatures, and will be governed by the provisions of the Law No. 17.228, of 7 January 2000, on the garment without displacement in everything not provided for in this Law.

The constitution of the actual right will require the notification of the Contracting Administration and the registration in the respective registry.

ArtAculoA 57.A (Pretensiation of performance of the garment).-The creditor of the contractor of a Contract of Participation of the Public Private-Private will have the right to execute the garment, either because the obligation guaranteed not to have been fully or partially satisfied, or when the contractor's failure to comply with the contract would have been resolved.

In both cases the creditor will have to notify the Administrative Public Administration of its intention to execute the garment. When the execution originates in the resolution of the contract for default of the contractor, that notification of the intention to execute the garment should occur within the ten days following that of the notification to the creditor of the decision to resolve the contract.

ArtAculoA 58.A (Extra-judicial execution of the garment).-The execution of the garment granted by the contractor according to the previous articles will be performed in an extra-judicial way by the Public Administration contracting, by public auction.

To that effect, the Contracting Administration shall, in a public manner, call upon those interested in participating in the auction, in accordance with the provisions of the regulations or in accordance with the specifications or in the contract Private-private participation. The Administration will authorize such participation whenever the applicant meets the requirements of the bidders in the selection procedure of the contractor that originated the contract in question; if the Contract of Participation Private-Private shall be partially fulfilled, it shall be sufficient for the applicant to comply with the requirements relating to the aspects of the subject matter of the contract pending compliance.

The highest bidder in the out-of-court public auction will be subrogated in the position of the contractor until the completion of the contract period or its terms if they correspond in accordance with the law, assuming the same rights and obligations of the the original contractor, both in front of the Administration and its creditor, if the claims were secured by the garment.

All the production of the auction, deducted the expenses it would have incurred, shall be intended for the payment of the loans of the creditor. If a remnant exists, it will be available to the original contractor. If a credit default of the creditor's credit is due, the successful bidder shall also assume the obligation to cancel it on the terms agreed upon originally or on which it agrees with the creditor.

If no interested party is allowed to participate in the out-of-court auction for reasonable reasons, or if there are no acceptable bids in the public auction, the creditor may exercise his or her rights against his debtor in the The jurisdiction of the court, which corresponds in accordance with the law, and the Administration shall proceed in accordance with the provisions of the third paragraph of Article 52 of this Law.



ArtAculoA 59.A (Expropriations).-For the purposes of the the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of Private-private participation.

Declare public utility and included in the ArculoA 4Aº of the Ley NAºA 3,958, of March 28, 1912 and its modifications, the real estate destined for execution of projects of the PAºblico-Private participation defined in the article 3Aº of the present law, therefore being subject to expropriate.

ArtAculo 60.A (Accounting Exposition).-The accounting treatment of the emerging obligations of a Private-Private Participation Contract will depend on the existence of a significant transfer of risks. In the construction phase and operation, this is when the payments in charge of the Public Administration depend on the availability and quality of service or demand, according to the report done according to the provisions of the artAculoA 18 of this law.

When there is a risk transfer, the payments to the contractor by way of investment made should be included in the investment budget for the fiscal year in which it is to be carried out.

Provided that the Contracting Public Administration is an Incisoa of the National Budget, the payments within the Investment Budget of the IncisoA 24 "Miscellaneous Credit" will be included and deducted the equivalent of the investment credit of the Contracting Incas.

In those cases where there is no significant transfer of commercial risks in the construction and operation phase, the investment component will be considered budget expenditure within the Contracting Public Administration. in the measure that the investment is due and the deferred payments to its charge shall be considered as a liability.

The General Secretariat of the Nació should carry out in an identifiable manner the registration of firm and contingent liabilities corresponding to the contracts of participation in the private-private sector and inform in each instance of the rendiciation of Accounts, the amount In addition to the investment executed by Fiscal Exercise and the Budget, it will be estimated separately from the public debt.

ArtAculoA 61. -A Ministries or bodies to which private initiatives submitted under the ArcuculosA 19 and 20 of the Law No 17,555,18 September 2002, for the construction of infrastructure works according to the provisions of Article 3 of this Law, should transfer the same, together with all of their antecedents, to the National Corporation for Development, within a period of time of thirty days running from the time of this law.

If the Ministry or body does not proceed as indicated within the time limit, it will be understood that the private initiative has been rejected.

ArtAculoA 62.A (Tope of firm or contingent liabilities and payments to contractors).-Without prejudice to the provisions of Article 60 of this Law, as of January 2011 and until such time as it is approved a new law, the total of firm and contingent liabilities arising from contracts of Private-Private Participation, calculated at net present value, will not exceed 7% (seven percent) of the Gross Domestic Product (GDP) of the previous year. For its part, the annual commitments to private contractors, originated by the Private-Private Participation Contracts, will not exceed the 5a€ ° (five per thousand) of the previous immediate year's GDP. For the purposes of compliance with these ceilings, the selection of the projects will be carried out in view of the value for money and their contribution to the strategic guidelines set by the Executive Branch.

In the case of departmental governments, you can commit part of the approved funds for each departmental government within the framework of the approved budget, as set out in the artAculoA 214 of the Constitution of the Republic.

For the purposes of the control of the established ceiling, the firm or contingent liabilities in currency other than the dollar of the United States of America, shall be valued at the exchange rate of the seller in force at the end of the last day (a) the preceding financial year for the counter-Ados before that date, and the exchange rate between the seller in force at the time of his contract, if the latter had occurred in the same financial year. The same criterion shall be used in the case of indexed units, based on the arbitrations defined by the Central Bank of Uruguay.

The evolution of such ceilings as a summary of the contents of the register provided for by Article 14 of this Law should be reported annually to the General Assembly, in each Financial Account.

ArtAculoA 63. -A This law shall enter into force for the thirty days of its promulgation and shall be applicable to the procedures for contracting in the framework of projects of the Public Private Participation, initiated with after that date.

This law may be applied to those projects of the Public-Private Participation that have been initiated prior to its validity, provided that all the requirements in this law are met.

A A A A A Sala de Sessions de la CA ¡ mara de Reps, in Montevideo, a 12 de julio de 2011.

José Pedro Montero,

works pasblicas


Montevideo, July 19, 2011.

Cúmplase, acúsásse recibo, comunaquese, publáquese e insatirtese en el Registro Nacional de Leitos y Decretos, la Ley por la que se diesdo el marco regularico aplicada al rámpimen de contrares de participatión público-privada para la performing infrastructure works and providing services related to them.



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Montevideo, Uruguay. Legislative Power.